Portfolio Crafter
10-18-2006, 11:35 PM
End of Day Market Summary Wednesday, 10/18/2006
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Stocks closed mixed with the Dow Jones Industrial Average failing to stay above 12,000, after it smashed through that barrier in early trade as IBM and Intel posted strong gains. The Dow soared after the latest reports on inflation and the housing market reassured investors. Corporate earnings and another drop in oil prices were also catalysts.
Today, the Dow Jones Industrial Average closed up 42.66 or 0.36% to 11,992.68, the broader S&P 500 index closed up 1.91 or 1% to 1,365.96, while the tech-fueled Nasdaq composite index closed down 7.80 or 0.33% to 2,337.15.
Market breadth was positive. On the New York Stock Exchange, winners edged out losers 9 to 7 on volume of 1.62 billion shares. On the Nasdaq market decliners edged out advancers 15 to 14 as 2.178 billion shares changed hands.
Investors bet that the economy, which is slowing, won't tip into recession, and that corporate earnings will keep growing. Worries about the slowdown in housing have also lessened. The economic numbers support the idea of a soft landing, and moderation is the word that the market really likes. The market has been going up in small steps that indicate god health.
The tame consumer-price report and better-than-expected housing data helped set the positive tone in the market. The CPI fell an unexpectedly steep 0.5% in September but the core CPI, which excludes food and energy prices, rose 0.2%, in line with estimates. Analysts had predicted a fall of 0.3% for overall CPI. The pace of home building unexpectedly strengthened in September as new housing starts rose 5.9%.
Stock of JPMorgan Chase & Co closed down $0.78 or 2.3% to $47.21, despite reporting better than expected results. Its net income rose sharply on the back of record investment banking fees of $1.4 billion. However, analyst are worried about signs of weakness in traditional areas like credit cards, commercial banking and mortgage lending.
Shares of Intel closed up $0.25 or almost 1 % at $21.11 after its third-quarter earnings report showed signs of being past the worst of its problems. The EPS fell to 27 cents compared to the expected 18 cents. Its revenue declined 12% to $8.7 billion, a shade above the $8.6 billion expected.
Stock of IBM closed up $2.87 or 3% to $89.82, on beating forecast and on being upgraded by Goldman Sachs to a "buy" recommendation from neutral. The company reported a 47% rise in quarterly profit, after boosting software sales through acquisitions and improving hardware and services revenue.
Shares of Yahoo closed down $1.16 to $22.99, after reporting disappointing results. However, it also reported that its new search technology was now live. The company reported revenue of $1.12 billion, up 20% from a year ago, but below estimates of $1.14 billion. It also reported lower expectations in the next quarter. It has a net profit of $159 million, against $254 million a year earlier.
Shares of Motorola closed down $1.21 or 4.9% o $23.64, after the cell phone maker posted lower-than-expected quarterly revenues. Overall, there has been a 45% profit drop despite a 17% sales rise.
U.S. light crude for November delivery tumbled $1.28 to $57.65 a barrel on the New York Mercantile Exchange. Futures turned lower as traders mulled a mixed Energy Department report on weekly supplies of crude and its products.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks closed mixed with the Dow Jones Industrial Average failing to stay above 12,000, after it smashed through that barrier in early trade as IBM and Intel posted strong gains. The Dow soared after the latest reports on inflation and the housing market reassured investors. Corporate earnings and another drop in oil prices were also catalysts.
Today, the Dow Jones Industrial Average closed up 42.66 or 0.36% to 11,992.68, the broader S&P 500 index closed up 1.91 or 1% to 1,365.96, while the tech-fueled Nasdaq composite index closed down 7.80 or 0.33% to 2,337.15.
Market breadth was positive. On the New York Stock Exchange, winners edged out losers 9 to 7 on volume of 1.62 billion shares. On the Nasdaq market decliners edged out advancers 15 to 14 as 2.178 billion shares changed hands.
Investors bet that the economy, which is slowing, won't tip into recession, and that corporate earnings will keep growing. Worries about the slowdown in housing have also lessened. The economic numbers support the idea of a soft landing, and moderation is the word that the market really likes. The market has been going up in small steps that indicate god health.
The tame consumer-price report and better-than-expected housing data helped set the positive tone in the market. The CPI fell an unexpectedly steep 0.5% in September but the core CPI, which excludes food and energy prices, rose 0.2%, in line with estimates. Analysts had predicted a fall of 0.3% for overall CPI. The pace of home building unexpectedly strengthened in September as new housing starts rose 5.9%.
Stock of JPMorgan Chase & Co closed down $0.78 or 2.3% to $47.21, despite reporting better than expected results. Its net income rose sharply on the back of record investment banking fees of $1.4 billion. However, analyst are worried about signs of weakness in traditional areas like credit cards, commercial banking and mortgage lending.
Shares of Intel closed up $0.25 or almost 1 % at $21.11 after its third-quarter earnings report showed signs of being past the worst of its problems. The EPS fell to 27 cents compared to the expected 18 cents. Its revenue declined 12% to $8.7 billion, a shade above the $8.6 billion expected.
Stock of IBM closed up $2.87 or 3% to $89.82, on beating forecast and on being upgraded by Goldman Sachs to a "buy" recommendation from neutral. The company reported a 47% rise in quarterly profit, after boosting software sales through acquisitions and improving hardware and services revenue.
Shares of Yahoo closed down $1.16 to $22.99, after reporting disappointing results. However, it also reported that its new search technology was now live. The company reported revenue of $1.12 billion, up 20% from a year ago, but below estimates of $1.14 billion. It also reported lower expectations in the next quarter. It has a net profit of $159 million, against $254 million a year earlier.
Shares of Motorola closed down $1.21 or 4.9% o $23.64, after the cell phone maker posted lower-than-expected quarterly revenues. Overall, there has been a 45% profit drop despite a 17% sales rise.
U.S. light crude for November delivery tumbled $1.28 to $57.65 a barrel on the New York Mercantile Exchange. Futures turned lower as traders mulled a mixed Energy Department report on weekly supplies of crude and its products.
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